085: Perspective in a Crisis

Michele  (0:01)  Welcome to the podcast today. Most of my podcasts are recorded well in advance of when you all are going to hear them, sometimes one or two months in advance. And they're normally planned out. Right now we're in a time of very dynamic changes to information. And what's happening can change in a matter of moments. What we start within the morning, may be something different than that we know or are learning about in the afternoon. And so what I want to do is, make certain that I am being dynamic in our podcast with what is happening and not to miss that. And so we're going to be changing up just a little bit. And you may also hear some of our podcasts that have been pre-recorded. We're going to look for a good healthy blend of keeping business moving, but also being able to share with you information that is relevant to today at this exact moment. So I just want to point that out to you, as you're listening to our podcast here. What we're going to be looking at today is creating a perspective for our business. This is being recorded, while we're working through the Cova 19 crisis. I do want you to think about this in a bigger and deeper way.

There are going to be multiple interruptions and disruptions to our business for a while. It's just going to happen. And so, use some of this information to help you think along that line. I also want to let you know that I have some supporting materials, videos and downloadable PDFs that you can get on my website. And you can find that at ScarletThreadConsulting.com. I'm also offering videos and training and pieces and parts of what I am creating for my Designers Inner Circle. I will be offering those in my Facebook group, Build a Profitable Business for Interior Designers and Workrooms. So please make sure you ask to join that Facebook group and you'll have access to some of those resources as they come out. Feel free to take notes and think about how to create a new perspective for your business as you listen to the podcast today.

Michele  (3:01)  All right, so let's jump in and talk about how to manage our businesses during a disruption. I've been doing webinars on this multiple times, and I'll try to link some of them up in the show notes so that you'll have them. I just want to share six things with you that I've been doing and been working with my one on one clients to do. And hopefully, if you implement them, you'll be able to see a difference for you as well.

So the first one is to control your thoughts. This can really be difficult. Everything starts with a mindset. And when the news is coming in and changing all the time and news from multiple directions, and it's not even saying the same thing, they're not even always in alignment with each other. It creates confusion and creates fear and it creates chaos. And then it causes us to worry about things that maybe we don't need to worry about and not worry about things we do need to worry about. I am looking for the good and this. This is terrible stuff we're living in. I mean, I'm not even gonna make light of that. But I am looking for the good because I know that it's there. I've been through enough in my life to know that amid difficulty, an awesome opportunity and awesome things are happening. Sadly, I'm also seeing a groundswell of people always wanting to look for the worst, and ramp that up. And I just want to encourage you not to do that. Look for the good, you always find what you're looking for. And so let's look for the good and let's be the good in this. Now, it's just not the time for us to look at the worst and everything. We have to be cautious, no doubt about it. And I want you to do that. But listen, none of us, if we had a normal mindset of looking for the worst and everything, would have ever started our own companies. That would be disastrous. And so we had to have some type of hope and some type of looking at the good, and willing to take a risk to even start these businesses. And so there is again, a lot of good happening right now. I mean, just think about our frontline people that are serving us, right?

We got people out here that are first responders. We have doctors, the people that are grocery store workers, filling up the shelves for us. We've got our pharmacists, we've got our trash collectors, we got our teachers, we got all of these people. They're jumping in and doing business and providing for us. We even have a large contingency in this industry, of designers and workrooms who are out making masks, just to help people ward off whatever viruses and germs that they possibly can. So there is so much great happening. There's innovation happening right now. Hopefully, there's being innovative ideas that are being discovered in our own businesses.

I want to also tell you that they always say that you are a combination of the top five people that you spend time with or the top five people that you've listened to and allow you to have access to your thoughts. So really think about that. Where are you spending a lot of your time and who has access to your thought process because they are, in some ways having control over you. So be careful who you listen to. And be careful of how much you listen. I know I am limiting my time on social media. I'm limiting my time in the news. I am reading news from multiple sources so that I can hopefully have a more well-rounded view of everything, but I still have to limit that because otherwise, it is, in some ways so gloom and doom, that it changes the way that I'm trying to just move about my day. I'm trying to, as I said, look for the good. I'm trying to look for positives. I'm trying to look for ways that I can manage. I'm trying to support others about that. I am a woman of faith. And I'm spending a lot of time in my own personal Bible study, and just trying to saturate my mind with things that put me in a good place. And help me manage my fear and anxiety, and the disruption and the change so that I can think clearly to keep going forward not only for myself and my family but for those that I support in the business.

Michele  (7:31)  Think about how you're doing that in your own company because you are in effect leading other people. And as that leader, you have to protect the way that you're thinking so that you can help preserve this business. The other thing that I would tell you is you might allow inspirational quotes to fill up your mind.  I keep those on note cards, I keep scriptural note cards, I keep them on my desk. I keep things around that inspire me. I have been thankful for those that have been putting out Instagram pictures of all the flowers blooming, I can just feel the difference. It makes me happy and it makes me feel like there are things to celebrate and to rejoice. So keep doing that keep being that positive influence for other people as you control your thoughts. 

Michele  (8:19)  Another thing that I've done to help control my thoughts is going around, walk around my neighborhood, say hello to people, certainly from our six-foot distance or way across the street from each other. But you know that being physically distance doesn't mean we have to be relationship distance. And so I want us to think about how do we continue to build relationships. I also at the end of my day, I try to think of things that I am grateful for before I go to sleep. Again, all of these things to control my mind and the racing thoughts that I might have. And so anything that you can do like that is going to help you, feel free to join if that's the support that you need. But find whatever you need, so that you can keep going in a good positive way because it will rub off on the people around you. And don't miss the opportunity to get some good rest, good nutrition, good exercise, because that's going to help you. Keeping our mindset together during this timeframe. This is going to be a bit of everything that we can do. It's seriously number one. Alright, so we're going to control our thoughts. 

Michele  (9:33)  Number two, I want you to consider moving into conservation mode. You know that I'm a Profit First Professional. And with that, I'm constantly telling you to take your profit first because that is sustainability in the company. And so we can't just stop there. What we do even in Profit First is we're constantly looking at our expenses. That's something that we do all the time. The more we enjoy saving more than spending, the better off we're going to be. We want to tell our money, where to go not have it tell us where it's going. Right. And so one thing I want to mention here, as we're looking about going through conservation mode is this is about all of your resources. So not just your money, I want you to think about how do I conserve money? How do I conserve time? How do I conserve my employees, everything that you're doing? We're looking to be very thoughtful and intentional during this. Here's the thing I am right now even in a shelter in place, right. And while I'm here, I have a little bit extra time to look over all of my expenses. One of the best things that you can do is go in and look at everything that you've been paying out and expenses both in your business and in your home.

Michele  (10:59)  Now I'm not going to give you a whole slashing dash model, I'm not going to tell you to do that. Because other businesses are trying to stay afloat and alive based on the fact that we are paying them. Just like we want other people to pay us to keep us moving, we have to be willing to do the same thing. And so, we do have to be very intentional with our resources. And so what that means is I want you to look at those expenses. If they are things that you do not use and have not used and will not use for all intents and purposes, they're useless to you right now. Get rid of them, not a problem. I'll give you an example. I have two gym memberships. One is to your general big box gym, and the other is to a private pilates studio. And at this time, my husband and I've been going through our expenses, and we realized that we are paying a gym membership, but we're not going. And not only are we not going, but we also haven't gone very much over the last two years, certainly not enough to the amount that we were paying. And so we decided to go ahead and cancel that membership and quit paying it. However, my pilates studio, it's had close. They have put everything on a temporary hold. Well, I didn't cancel that one, I just put it on hold, because that's what they're doing. And I know that I go four times a week. So I am certain that the minute that I am relieved to get the go out of my house and to go to that, I'm going to use it.

There may be some of you that are spending money on resources for subcontractors that you can still use during this time, keep paying them. If you're having to reduce hours, then that's a different conversation. But I just don't want you to think this means you got to go slash and dash everything to zero. Then you can't run your business and you're going to have difficulty ramping the business back up when it comes back online. So just be very cautious and careful with how you spend your resources. The same is true with our time, I'm being very cautious and careful about how I spend my energy and my time and what I work on and how I work on it. When you work with intent and you work with integrity, it's going to work out so much better for you. So, just think about conserving. Listen, many of you are probably also trying to raise your families, homeschool, work, keep a house going all while being combined. So be certain that you give yourself some grace in all of this. Okay? What we also want to make certain during this time of conservation is that we're protecting our brand. So when you make these cuts or reductions or delays, just make certain that it is not in a way that is going to ruin your brand. So that you know again, when we go back to more business, as usual, you're not having to undo something that you did. 

Michele  (14:06)  Here's another thing that I'm doing. I am being very clear on my cash flow position. And what does the mean? That means I am being very clear at all times how much cash I have on hand. How much cash is going out? How much cash is coming in, and I know how long it is going to take me to run out of cash based on the way that I'm doing business. In my blog post for April 2020. I am going to have a blog post on creating your cash flow position. And so you're going to be able to read that. You can watch a video training that I've done on it and there's a downloadable document to help you through it. And so make certain that you watch the blogs and sign up for my newsletter so that you can get any of that information as it's coming out.

Knowing my cash flow is critical to know where to spend, how to spend, how long it's going to last, what decisions I can make, and how to move forward. I'm also going to be looking at it daily. I may look at it weekly, bi-weekly, especially if you have payroll or monthly. I analyze that multiple times and make certain that I know where I am. So that my decision making is never made in a backend. I'm always making it with metrics. I'm always making it with data. And you know what's so cool about having a cash flow position, statement or analysis is, I know where I am now, but I have an idea of what's coming. And so if I need to start shifting, I have time in advance to shift. This is all about planning as much as we possibly can. And so just having an idea of how cash flows in and out of our company put me in a much different position than if I didn't know that. 

Michele  (16:09)  Number four, communicate, communicate well, and communicate often. So very important. And when I say communicate well and communicate often, it's about communicating, internally and externally. To communicate with your employees. If your employees are all scattered, and they're all at home, make sure that you're talking to them, connect with them, use Zoom. Make sure certain that they understand the values of the company, what the company's doing, where you're going, how you're trying to protect them, and protect the company. Speak up to your vendors, talk to them, let them know if you're struggling, let them know if you need help. Reach out to your landlord if that's the help that you need. Listen, we are all in this together. It is not like what is happening right now is only attacking certain businesses, this is across the board. So we're all in this together, we're all going to get out of this together and we have got to communicate in a way to do that. This is not a time to let our pride or ego get in the way if we're struggling. If you need help, you need to communicate with your support people, you need to ask for that help. Don't sit back and struggle or downward spiral. We all have to stick together and to move forward.

Communicate with your clients. Let them know what you're doing on their behalf. Let them know how your business is changing, and how you are adapting and pivoting to serve them right now. Once they know that, they're able to then say, Well, hey, here's what I need. And communication is more than just speaking is listening. So, reach out to your clients. Listen to what they're saying. Listen to their needs, listen to their post on social media. Use this as a beautiful time to craft something that they might want, or they might need to repackage your services differently. Do the same with your vendors, maybe they don't have one thing that you've always bought from them that they now have something else. Use that as part of your platform for what you're doing.

Michele  (18:18)  All of this is changing, and it's changing rapidly as we know. And so just know that everybody is doing their best. And whatever information you communicate at the beginning of the week, you may have to communicate a little differently at the end. And this even applies to our marketing. This is not a time to stop communicating that we're open and that we're able to work if that is truly where you are. Now our marketing message might shift. What we're saying might change how we are providing that product or service might change. But please don't let this shut you down and make you back off. There is nothing worse than us feeling alone in this. Out of fear not continuing forward, continue forward in a planned and intentional way. So that you are ready when everything starts back up. Make certain that if you're asking for grace and flexibility from those that you work with, that you are offering it to those that work with you, as well. Be kind, I mean, that's just the biggest thing right now, kindness goes a long way. Empathy goes a long way. Caring goes a long way, I think that is going to be some of the beautiful gifts that we get out of this Covid 19 is the ability to see each other differently, to care for each other. And to understand the symbiotic relationship that we all have. We all depend on each other to make this world work. To just embrace that and to do our best for where we are at any given time. 

Michele  (19:56)  The next thing that I want to encourage you to do is to keep perspective. This is going to end, it really is going to end. It's not going to be here, forever. But I would say to you right now, we don't know when it's going to end. But it is going to. And so this is a short term thing in the grand scheme of all the world. It feels weighty and heavy while we're in it. Not going to argue the point. But it is short term. I was talking to somebody earlier today, and we were talking about what do we think we're going to feel like on the other side of this? And how are we going to look back on this and what are we going to wish we had done while we were here? Not that we want to live with regrets. But I want you to think if we're out 10 years, what are the lessons that you hope to have learned during this? And let's start putting those into practice. What are the ideas that could come out of this? There are huge things that are already happening again, we've got factories that are turning into totally different manufacturers. They're now producing ventilators and they're producing PPE equipment. They're producing all of these things that they were never made meant to do. And just the technology that's going to come out of this. And then we have so many people that are now on Zooms like all of our students everywhere and teachers everywhere and businesses are now fully conducted online.

The world is going to shift through this, it's going to be a shift. But that doesn't mean that that shift is all bad. So look for ways for things to be innovated. Look for ways for your business to change. Many of my clients we're working through right now, really coming to terms with finding out which parts of their business they love because that's what they're going to take into them when they do their restart. When they go back to doing business. It's not going to be business as it was. It's going to be business as it is. And so this defining and purifying of who you are, who you are in business, your why your mission, your vision, your values, this is a beautiful time for all of that to happen. And just to see the gaps and the holes and how you can fill them in your area. So with that integrity, work with the idea of this is going to bring about some possibilities that we wouldn't have had before. In some ways we were so busy, I can't even tell you how many of us have said, Gosh, I wish the world would just slow down for a little bit so I could catch up. Well, that's what we have the world has slowed down, and this is our opportunity to catch up. We just don't want to miss that. 

Michele  (22:44)  Lastly, I want to suggest to you to work with your professional teams, those that are on your team. Jennifer Smith and her podcast mentioned it, about having her Board of Directors, but this is a time to talk to your bookkeeper or your accountant. Your coach, your law, those people that are supporting you. With all of the changes that are coming out of the government, where we're going to have different types of assistance for our employees, for our businesses. Listen, those things need to be done with care, even taking loans, all of that it cannot be done willy nilly just go get it because you want to get it, you've got to be very intentional and careful that you follow those rules. And so listening to these team members that hopefully you have already accumulated, having them guide you on what is best for your company is hugely important. I know I'm already doing that. I'm talking to my lawyer. I'm talking to my coach. I'm talking to my accountant and making certain that the decisions that I make for my company are in the best alignment for me because it's not a one size fits all on anything.

This is a fantastic time to make certain that you understand your financials. You can't do cash flow and make some of these decisions if you don't know that. And so I want to encourage you, while you're at home right now, to take The Understanding Your Financials course, take The Master Your Profit course behind it. My clients who have been doing that work before this are coming into this in a very different financial situation than those that haven't. And it's a better financial situation. And so I can teach you how to do that. And it's not too late to do it. So if you can go in and take those courses right now, it is going to empower you to know where things are, to know how to make this last, to know how to even shift and maybe pivot your own company so that you can continue or restart differently. I've been shouting from the rooftops about profit first for over five years now. And I can just promise you that it is a process that works along with following the Dave Ramsey Financial Peace. It works. It works. It works. So, use this time, in general, to figure out who you are and what you want to do going forward.

Michele  (25:09)  Again, I want to go over these six things. Control your thoughts, find balance, find inspiration, and be careful who you listen to. Number two, move into conservation mode. Be very thoughtful and intentional on how you spend your money, and how you spend your time and how you spend your resources. Number three, know your cash flow position and use that analysis and that information to help you in decision making. Don't decide with blinders on. Number four, communicate well and communicate often. And this is in all aspects, to your employees with your clients, your vendors, your marketing to your prospects, all of it. Be as open and honest as you can be right now. Number five, keep perspective. This will end. It is short term, and it will end. But use the time wisely so that you're not wasting this slowdown time that we have. And number six, work with your professional team. This isn't a time to feel like we have to do it all by ourselves. And you know, at the end of the day, we just want to remember those who are fighting on our behalf. Again, the grocery store workers, the people that are stocking the shelves at night, those that are doing all the deliveries to our home so we don't have to go out those that are keeping, you know, just our world spinning these essential businesses that are staying over. We want to be thoughtful of them and we want to say that we see them as heroes, but we can be heroes of our own and our businesses by meeting the needs of those that are depending on us. So use this time.

Michele  (26:51)  I know right now I am choosing to be thankful. I am choosing the kind. I am choosing to show love. I'm choosing to help us out together and focus on not just saving us individually, but by helping us all save our communities and save our world and save our businesses. There's so much good. And I know that you're going to see an opportunity out of this if you look for it because we always find what we're looking for. We always find it. So think with hope. Think into the future, think about how we can do things better. Think about opportunities, think about the things that you're doing that you don't love to do. Think about where you might want to niche down differently. Use this opportunity to become who you are becoming in life and business.

Know your cash flow, know your cash flow and know your cash flow. If you don't know your cash flow, please reach out. I just cannot even stress enough how much I want you all to survive this and not just to survive it but to thrive through it. And the way to do that is to know and understand those financials, know how it is tied to your sales. Know how to go out and Get those sales so that you can keep making it. One of the things that I'm doing right now at Scarlet Thread Consulting is I'm opening up some 30-minute one to one strategy calls because that's what I have been told by you all that you want more than other groups. I've got a group you can join. It is The Designers' Inner Circle. I have a free group Build a Profitable Business for Interior Designers and Workroom, you can join it. I have all types of resources to help you. But sometimes you just need a call with somebody who is on the other side to help you create a strategy. And so I am opening those slots up for April. They're 30 minutes' thoughts. They're at a much-reduced rate, and I normally don't even offer them, but I want to be of service to you. For anybody who feels like you need somebody to look at your numbers to have a conversation with you to tell you what to do next. And to help you hold on through this. I am happy to do that. My Calendly link will be in the show notes and you can go in and register there if you want to take that opportunity. I want to thank you all for listening to this podcast. I want to thank you for allowing me to be part of your thought process. And I just want to encourage you to keep going and keep doing and to share hope and love with those people that are around you. If you need any support at all, please reach out and let me know. Please know that everything we're doing happens with intention and just like profit none of this happens by accident.